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My Life and Work

My Life and Work

Henry Ford, Samuel Crowther
1922
T2 234 pages ยท about 3h 54m to read OL4418043Wgoodreads

Insider account: Henry Ford's own manifesto on mass production.

Summary

Henry Ford published this in 1922 with Samuel Crowther, at the height of the Model T's dominance, as a statement of his industrial philosophy. It combines autobiography with an argument about what manufacturing is for.

Ford's economic claim is that the purpose of business is to produce more goods at lower prices, that prices should be cut before costs are known to be reducible in order to force the organisation to find the reductions, and that wages should be high because workers are also customers. He describes the five-dollar day introduced in 1914 as a business decision rather than charity, arguing that it reduced turnover, raised productivity and expanded the market. He describes the moving assembly line, the standardisation of parts, the elimination of unnecessary motion, and his hostility to inventory, which he treated as money doing nothing.

He is contemptuous of finance, of accountants, of experts and of anyone who studies a problem rather than trying things. He argues that a business should be financed from its own earnings and never from banks, on the grounds that lenders will eventually control it. The book contains no acknowledgement of the human cost of the line, of the Sociological Department's surveillance of workers' private lives, or of the Service Department's violence against organising. Ford's antisemitism, published elsewhere in the same period, does not appear here but is part of the record. Read it as a primary document of mass production doctrine, stated by the person who did most to establish it.

Key takeaways 7

  1. Ford argues that a manufacturer should cut prices first and then force the organisation to find the cost reductions that make the price viable.
  2. High wages are a business investment because they reduce turnover, raise productivity and create customers for the product.
  3. Inventory is money doing nothing, and Ford treated the reduction of materials in process as a direct source of capital.
  4. A business should be financed from its own earnings, because borrowing transfers control to lenders who understand nothing about the work.
  5. Standardising a single product allows the manufacturing process itself to be engineered, which is where the cost reductions come from.
  6. Ford rejects expertise and formal study in favour of experiment, which he treats as the only source of industrial knowledge.
  7. Waste of any kind, in motion, material or time, is the manufacturer's central enemy and the source of all available savings.

Who should read it

Operators and investors in manufacturing who want the founding statement of mass production doctrine from its principal author, read with its omissions in mind.

Where it sits in the reference 2

Companies
Business models

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